Labour charges cannot be disallowed in the presence of proper attendance registrar and wages account

Last updated: 07 September 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The fact of the case pointed in the following points: FOR THAT the Ld. Commissioner of Income Tax (Appeals) Jalpaiguri acted unlawfully in upholding the assessment order framed u/s. 143(3) of the Income Tax Act, 1961 by the Ld. Income Tax Officer, Ward 1, Raiganj passed in gross violation to the provision of s.143(2) of the Income Tax Act, 1961 and also infringes the Instruction No. 241/23/70 dated 23-10- 1970 issued by the’ Central Board of Direct Taxes in this respect and., such action on that behalf is ab initio void, ultra vires and ex-facie null in law. 2. FOR THAT the Ld. Commissioner of Income Tax (Appeals) Jalpaiguri acted unlawfully in upholding the alleged disallowance resorted to by the Ld. Income Tax Officer, Ward 1, Raiganj in the sum of Rs.1,01,754/- in respect of expenses claimed under “Labour Charges” on the specious ground “to curb the possibility of revenue leakage” without adducing any adverse evidence on record and his purported action on that behalf is altogether arbitrary, unwarranted and perverse. 3. FOR THAT on the facts and in the circumstances of the instant case, the Ld. Commissioner of Income Tax (Appeals) Jalpaiguri gravely erred in upholding the impugned disallowance amounting to Rs. 4,438/- in respect of “Office Expenses” on a tenuous premise of being “excessive” by the Ld. Income Tax”

Citation :
Delta Construction C/o Shri Somnath Ghosh, Advocate Seven Brothers’ Lodge, P.O. Buroshibtala, Chinsurah Hooghly, Pin-712 105 (PAN: AACFD 1989K) (Appellant)–Vs.- ITO, Ward-1, Raiganj (Respondent)